ERDEM-NEWSLETTER-2018-metin

Share Pledges in Joint Stock Companies * Prof. Dr. H. Ercument Erdem Share pledges in joint stock companies are not specially regu- lated under the Turkish Commercial Code (“TCC”). Therefore, the provisions of the Turkish Civil Code that regulate the general rule regarding pledges, shall apply. Under Turkish Civil Code Article 954, transferable receivables and other rights may be subject to pledge. The pledge established on a share in joint stock companies is a “ pledge right established on the right. ” Apledge is established on shareholding rights. A pledge on receivables and rights is subject to the principles of movable pledges. (Turkish Civil Code Article 954/2). Establishment of the Right of Pledge on a Share In General. The right of pledge on the share of a joint stock com- pany is established by the act of disposal after the promissory transac- tion. A promissory transaction is the pledge contract (Turkish Civil Code Article 955/1, 3). The subject of the pledge contract is the un- dertaking of the debt to establish a pledge on behalf of the creditor on the share of a joint stock company owned by a person. It results in the obligation of performing the act of disposal. The parties to the pledge contract are the pledger and creditor. The pledger may be the debtor of the receivable that is secured, or a third party. On the other hand, the creditor may only be the owner of the secured receivable, in accordance with the accessory nature of the right of pledge. An act of disposal shall be conducted after the conclusion of the pledge contract. An act of disposal depends on whether or not the share is certified (Turkish Civil Code Article 955/1, 3) and the type of the share certificate (Turkish Civil Code Article 956). Although these * Article of May 2018